Medical Devices Reimbursement Market Growth & Trends
The global medical devices reimbursement market size is expected to reach USD 1028.2 billion by 2030, according to a new report by Grand View Research, Inc. It is expected to expand at a CAGR of 9.4% from 2022 to 2030. Medical device reimbursement is defined as the payment a third-party private or public insurer pays a healthcare provider for the cost incurred while using medical equipment. The major factors fueling the industry growth are growing dependence on reimbursement, the increasing prevalence of chronic diseases, and growing preventive care. Focus on early diagnostics and preventive care may in turn lead to higher activity within the diagnostic device industry, thus promoting more reimbursement share from them.
For instance, a fundamental paradigm shift towards incentivizing early diagnosis through reimbursement has been noticed across developed economies, such as thorough screening for breast cancer. During the COVID-19 pandemic, surgeries such as robotic-assisted procedures were postponed. However, during the pandemic recovery period, these surgeries are expected to improve particularly in Asia pacific as the countries such as Japan and China are actively involved in providing reimbursement to robotic-assisted providers to improve the accuracy of surgeries. Such initiatives are likely to have a positive impact on market growth in the post-pandemic period. With an increasing demand for medical equipment, reimbursement services are expected to provide various opportunities for healthcare industries to poach upon. Additionally, the increasing number of people pursuing insurance and consolidation of the healthcare system are major factors fueling the industry growth.
North America dominated the market with a revenue share of over 50.0% in 2021 and is expected to maintain its dominance over the forecast period. The rising demand for healthcare equipment and the increasing number of healthcare centers are expected to drive the industry in this region. The growing prevalence of chronic diseases is driving the demand for various healthcare instruments. This is further expected to support the growth of the regional market. Over the years, the Centers for Medicare & Medicaid Services have reduced the reimbursement for diagnostic radiology in the U.S. For instance, in January 2022, a study published in Science Direct stated that, between 2011–2021, there was a steady decline in the reimbursement for diagnostic imaging studies. A continuation of this trend by the government agencies is expected to have a negative impact on the regional market growth in the post-pandemic period.
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Medical Devices Reimbursement Market Report
Medical Devices Reimbursement Market Report Highlights
- The private payer segment dominated the market with a revenue share of over 65.0% in 2021 due to the presence of a large number of private players
- By healthcare setting, the hospitals segment held the largest revenue share of over 50.0% in 2021 due to recent technological developments and high patient footfall requiring the use of healthcare instruments
- Asia Pacific is projected to witness rapid growth during the forecast period owing to the rising penetration of insurance services in rural and urban areas
